List and Describe Four of the Six Categories of Economic

question 74

Essay

List and describe four of the six categories of economic exchanges that are omitted from GDP calculations.Explain why these transactions are not included in GDP and give an example of each to help support your answer.

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Definitions:

Nonrival-in-consumption

A property of a good whereby one person's consumption does not diminish the utility of that good for others.

Consumption

The process by which goods and services are used up by consumers, reflecting the end use of products and services in an economy.

Nonpaying Customers

Individuals or entities that receive goods or services without providing payment or compensation.

External Benefits

refer to positive effects of a transaction or activity on third parties who are not directly involved in the transaction.